This is a mobile optimized page that loads fast, if you want to load the real page, click this text.

IFL - Insignia Financial

Jump to new
Class action against IFL dropped.
https://www.moneymanagement.com.au/...sed-class-action-against-ioof-settles-quietly
From the article:
The class action had been brought by law firm Quinn Emanuel Urquhart and Sullivan on behalf of shareholders who had acquired an interest in IOOF’s shares between 27 May, 2015, and 9 August, 2018, with the company saying at the time the action appeared to be based on evidence given to the Royal Commission and that APRA had commenced legal proceedings against certain officers of IOOF

The APRA action which appeared to underpin the class action failed in court last year.

IOOF noted that it was making no payment to the plaintiff, its lawyers or the litigation funder and was very happy with the outcome.


Still holding.
 
Ioof to buy MLC from NAB for $1.4billion, well this will be very interesting.
https://www.theage.com.au/business/...th-business-in-1-4b-deal-20200831-p55qsr.html
The deal will swell IOOF's funds under management to $510 billion, with $173 billion of this in superannuation monies. Mr Mota said scale was critical for the company's success.
It looks like a make or break moment to me. They will have to be nimble to take on the industry funds.

I do hold.
 

I haven't really been following this however it looks like a dilution tantrum stemming from the acquisition of MLC. Not sure how profitable MLC is or why NAB want to offload it.

What doesn't make sense to me is why have IOOF done a massive equity dilution to raise funds to acquire MLC when the regulators haven't given approval?


(https://www.asx.com.au/asxpdf/20200831/pdf/44m40s3w3vwb9d.pdf)


(https://www.asx.com.au/asxpdf/20200831/pdf/44m40v723jmmv7.pdf)
 
Last edited:


This whole deal looks back-the-front to me:

Do miners just start raising money to mine the ground without regulator approval?

Do airlines just start raising money to fly their aircraft into any country without regulator approval?

Maybe IOOF comes good; but like I said, the deal doesn't make sense to me.
 
Last edited:
It has a huge smell about it, why would NAB sell, why would IOOF buy, how do you make money selling super and make enough to pay dividends and management fees. When industry funds are not paying dividends only management fees.
As a niche player, they were smart, nimble, clever and sharp.
This time, maybe that sharp they cut themselves, I would love to know the reasoning, on how they expect to outperform enough to justify the outlay on the purchase
Just my thoughts.

I don't hold
 
The other thing that I wonder about is, when there is a huge amount of dilution, will there be a share consolidation at a later date?
Eventually everyone gets sick of riding the horse into the ground, I have done it enough times, to just jump off when it gets weird.lol
Again just my thoughts.
 
NAB is getting out of Wealth management just like all the other banks. It’s not their core business. IOOF has obviously jumped on the opportunity even though it will stretch out its resources to the max. Time will tell if it nails the transition but the history certainly remains on its side. Also I don’t see the regulators objecting to IOOF acquiring MLC over some equity firm from US trying to make a quick buck. I’m holding and topped up at 3.10.
 
The regulators agreed with the takeover, the market is still to be convinced on the merits of the move.
 
i would like to watch longer before i decide if invest more into this stock

i worry if it has over-expanded

i have resisted averaging down from my $8.67 entry price

DYOR
 
“The results achieved over the quarter are in line with expectations,” said Renato Mota, chief executive of IOOF. “During a period of significant transformation, all our businesses grew, assisted by investment gains.”
Click to expand...

SPIN

IOOF suffered net investor redemptions from its financial advice and funds management units in the September quarter, although increases in fund holdings helped to push up overall assets under management and administration.

There was $1.4 billion in net outflows during the quarter while market gains of $2 billion pushed overall funds under management to $98.3 billion.

Funds under administration edged $1.8 billion higher to $222.8 billion despite net outflows of $900 million as market gains added $3.4 billion to the overall total.
 
You must log in or register to reply here.

Similar threads

February 2025
2
Replies
33
Views
2K
ducati916
April 2024 DDD
3 4 5
Replies
98
Views
9K
ducati916
DrBourse TA Help for Beginners
14 15 16
Replies
319
Views
67K
farmerge
Basic chart analysis/chart reading 101 for beginners
Replies
10
Views
4K
Gunnerguy
G
All trading needs to cease for 14 days prior to Monday open in Sydney
2 3 4
Replies
75
Views
11K
divs4ever
Menu
Log in
Register
Cookies are required to use this site. You must accept them to continue using the site. Learn more...